Managers look for tactical plays on US crisis

clock

US investors sheltering in cash as politicians grapple with the debt crisis are set to reinvest during a short-term correction they said could see equities sell off as much as 10%.

Over the weekend US president Barack Obama announced Republican and Democratic leaders have hammered out a framework for a deal on raising the US debt limit and avoiding default. But Congress is yet to approve the deal and votes in both houses will take place today. Under the proposed deal, the debt ceiling will be raised by $2.4trn, and Congress will work to reduce the deficit by a similar amount over the next decade. Most managers have already ruled out a default, which would most likely prompt a return to recession and impact markets worldwide. But despite the fact politicians h...

To continue reading this article...

Join Investment Week for free

  • Unlimited access to real-time news, analysis and opinion from the investment industry, including the Sustainable Hub covering fund news from the ESG space
  • Get ahead of regulatory and technological changes affecting fund management
  • Important and breaking news stories selected by the editors delivered straight to your inbox each day
  • Weekly members-only newsletter with exclusive opinion pieces from leading industry experts
  • Be the first to hear about our extensive events schedule and awards programmes

Join now

 

Already an Investment Week
member?

Login

More on US

Shard Capital's Julian Wheeler: Trump 'gambling with fate of US economy'
US

Shard Capital's Julian Wheeler: Trump 'gambling with fate of US economy'

Trump behaving with 'absolutism'

Julian Wheeler
clock 24 March 2025 • 3 min read
Fed dampens US growth prospects as Powell warns of tariffs' inflationary impact
US

Fed dampens US growth prospects as Powell warns of tariffs' inflationary impact

Too early to look through inflation

Linus Uhlig
clock 21 March 2025 • 2 min read
The Big Question: Can Donald Trump's stance on tariffs work alongside US stock market growth?
US

The Big Question: Can Donald Trump's stance on tariffs work alongside US stock market growth?

Nine experts answer

Investment Week
clock 17 March 2025 • 1 min read
Trustpilot